More clamps on fixed-asset investment

Upping the ante on its push to slow down growth in fixed-asset investment, Beijing announced new clamps on industrial projects that do not meet its industrial policy goals. In a circular to regional governments and central agencies, the State Council says decisive measures are called for, the South China Morning Post reported. The circular says new investments should be examined closely by both the regulatory authorities that approve them and the banks that finance them. At the same time, governments and government offices are called upon to halt investment in industries with excess capacity, including steel, coal, automotive, cement and textiles, because ï¿½continued rapid growth of fixed-asset investment will worsen excess industrial capacity and raise financial risks". Fixed-asset investment grew 30.3% in the first five months of this year over 2005.

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